Open letter to Dr. Kumar Chandrasekaran, CEO, Insite Vision:
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Kumar,
We've been playing "telephone tag" for the better part of a week, so I
thought I'd try communicating this way. I've got a few questions that
weren't answered at the H&Q conference.
Insite's stock dropped around $1.50 the day after your presentation.
It's never fully recovered. From what little I've heard, this has more
to do with what you didn't say than what you did say. Long term
investors like myself and, apparently, a number of short term traders,
all expected some details about the glaucoma gene kit corporate deal,
some info about imminent FDA filings (BetaSite, PilaSite, MethaSite)
and, perhaps, a bit more specific info on future drug development work.
Care to comment on any of those subjects now?
In reviewing your press release from the conference, I didn't see
anything really new except, perhaps, an inference that there are more
glaucoma-related genes that have been identified, beyond the two that
have been announced. Is this true? Did I misread the release? Is this
the kind of thing that makes getting a corporate deal more complicated
than the general public (like me) realizes? As you know, those of us
who follow Insite closely expected an announcement last year.
You've had corporate partners for PilaSite, BetaSite and MethaSite in
place for about six months. Are FDA filings imminent? I realize you
can't be too specific, but can you give me a feel for when those filings
will occur; early 1997, late 1997, etc.?
H&Q's analyst speculated in one of his write-ups that your DuraSite
system might make a safe, effective drug delivery system for a number of
ophthalmic products. Any new products been added to your research
pipeline lately?
How's your cash situation? Last time we discussed this (a few months
ago) it looked like you were solid through early 1998. This still
true?
You still expect to turn a profit in 1998? This is another subject we
discussed several months ago.
Last Fall, you told me you expected to pick up more analyst coverage for
Insite. Any new developments on this front?
I've held INSV for over a year now. It's been frustrating. The
company's positive developments/announcements have been largely
ignored. In part, this has been due to a lack of coverage. But it's
also true that the biotech sector has, for the most part, been
out-of-favor. New drug approvals, major corporate partners, and new
products should help the group in general and Insite in particular this
year. At least I hope so.
Anyway, let me wish you a belated Happy New Year!
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I sent this to INSV last week. According to his assistant, Renate, Kumar is off-site for the next week or so. I'll let you know when I get a response.
Bob M. |
